Forex Marketz Daily Forex News – Fully Markets Update
Gold futures prices were up during this morning’s Asian trade session. Traders saw risk appetite sour, boosting safe haven asset classes, as concerns of a recession in the United States as well as a global economic slowdown mounted. This boosted price action in the bullion contracts to start the week.
As of 4:25 am GMT, the widely traded spot gold futures contract was trading higher. This contract added 0.2 percent to trade at $1,316.11 per ounce.
U.S. gold futures, for front end delivery were up 0.3 percent to trade at $1,315.80 an ounce.
Last week, the yellow metal saw its third week in a row of gains. These contracts gained one percent. This was the largest weekly percentage gain since February 1.
This morning, Asian traders dumped equities and boosted the safe haven Japanese yen. The yen is near a six week high against the dollar.
Gold Traders watch Tepid US Economic Data
Economic data, on Friday, out of the Unite States, showed that March manufacturing activity unexpectedly cooled down. In data out of the Eurozone, businesses performed worse than expected for March. This fanned the flames of a global economic cooldown.
Benchmark US Treasury yields also moved lower. They are below their three month rates signaling an inverted yield curve. This indicates a recession. This yield curve inverted for the first time, on Friday, since 2007.
Lower yields, bring a weaker dollar, which is bullish for commodity prices as it helps non-US traders who use other currencies.
